While commercial intercourse in gold and, in general, precious metals is widespread, a similar use of diamonds and other precious stones in commerce has been restricted because of problems intrinsic to precious stones which require an evaluation by experts at each trade, exchange or sale.
Thus diamond speculation is much more limited than speculation in other articles of value and bank, investment organizations and individuals have generally avoided speculation in diamonds without consultation with experts as to the value and characteristics of the stones.
Attempts have been made to overcome the disadvantage that diamonds, unlike coins, are not readily identifiable without experts, by providing the stones in plastic packages and accompanying the stones with certificates as to value, weight and quality. These efforts, however, have not been fully successful in inducing a widespread trade involving non-experts. While certificates and packages of the aforedescribed type are useful in trades involving honest individuals on all sides, this cannot be guaranteed.
Both American and German institutions have established precise guidelines for the determination of diamond values and these rules have been applied in the diamond trade but have not increased the possibility of individual investment in diamonds because of the uncertainty which accompanies any handling of items which are not readily identifiable as to quality, weight and value.
Gold, coins and like investment-grade articles can be purchased from banks, have a daily ascertainable value and can be converted widely and at practically any time into currency or other forms of investment or value in unrestricted commercial intercourse because of the identifiability of the items.
Diamonds, however, do not have this advantage although a market value can generally be ascertained for a particular quality and size of the gem stone.
Banks and investors require security, identifiability and convertibility, three characteristics which, without the intervention of experts, have not been fulfilled to date by precious stones.
Relevant prior art includes Swiss Pat. No. 568,201, U.S. Pat. Nos. 2,144,336, 3,406,821, 4,063,639 and 3,957,157 and German patent document No. 2,552,101.